Price rise problem aggravated because of below-normal monsoon forecast: Finance Minister Arun Jaitley
The NDA government, which has been confronted with the spectre of spiralling prices of food items soon after its advent to power at the Centre, today once again sought the cooperation of the states in battling a problem which, it said, had been an annual fixture at this time of the year.
"During July-December every year, prices of some food items increase because of hoarding,'' said Union Finance Minister Arun Jaitley while addressing a conference of state food ministers here today. The problem, he argued, had been aggravated because of the below-normal monsoon forecast. (
Monsoon Revives After Weakest Start in Five Years)"Hoarders are taking advantage of the forecast of below normal monsoon. State governments should take stern action against hoarders to rein in prices. The Centre will give complete support,'' he added. (
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The Union Finance Minister, at the same time, sought to underplay reports that the prices of food items had touched an all-time high. "Onion prices are lower than last year, so there is no panic situation,'' he said, adding, that the Centre was keeping a close tab on the situation. (
Will Limit Stockholding of Onions and Potatoes, Says Government)Controlling prices has been accorded top priority by the Narendra Modi government. Prices of commodities such as potatoes, onion, rice, pulses and milk have been showing an upward curve since January this year, the government's failure to rein them in has exposed them to taunts from the opposition parties. The Congress, in fact, used the BJP's "
Acche Din Aa Gaye Hain" (Good days are here) slogan to take a jibe at the government.
The government has taken a series of steps to rein in prices. Earlier this week, it brought onions and potatoes within the ambit of Essential Commodities Act, 1955, and authorized the states to set stock-limits for these two food items.
It also ordered the release of 50 lakh tonnes of rice for BPL and APL families for the remaining part of the fiscal. It also raised the export prices of the two commodities in order to ensure their availability for domestic consumers.
The Centre has also asked the states to crackdown on hoarders and black-marketeers.